From Jubilee to Prosperity: Leveraging The Next 60 Years of Zambian Independence
By Dr. Kiru Sichoongwe
This year, Zambia is celebrating its diamond jubilee, marking 60 years of independence. It presents an opportune time to reflect on the country’s journey and anticipate how the next sixty years can be optimized for economic development. This milestone not only allows us to acknowledge past achievements but also to chart a path for long-term economic growth. The past six decades encompassed both challenges and successes, and this juncture serves as a crucial moment to build upon our accomplishments while tackling the obstacles that lie ahead.
The journey from jubilee to prosperity requires us to harness national resources, adopt innovative policies, and cultivate partnerships that can inspire growth for future generations. This blog outlines key strategies that Zambia can implement to reshape its economic landscape over the next sixty years.
Zambia gained independence from British colonial rule on October 24, 1964. Despite an abundance of natural resources like copper, cobalt, and fertile land, Zambia still has challenges to overcome, including high poverty rates, unemployment, and inadequate infrastructure. As the nation embarks on the next phase of its development, it is essential to critically evaluate these historical challenges and identify pathways for improvement.
Zambia, as a land-linked country in southern Africa, possesses diverse sectors ripe for growth and development over the coming sixty years. By adopting a multifaceted approach focused on sustainable growth, inclusive development, and optimizing both resources and human capital, Zambia can effectively advance its economic goals.
Below is my analysis of key sectors where Zambia holds comparative advantages, along with strategic recommendations for leveraging these sectors for future growth.
Agriculture
Agriculture is vital to Zambia's socio-economic development, employing 51% of the workforce. More than half of the population relies on agriculture for food, primarily through smallholder farming. Furthermore, agriculture supplies raw materials for manufacturing and food processing, creating additional job opportunities, particularly for women and youth.
The sector also contributes significantly to Zambia's export earnings, generating about 29% of non-traditional exports and 7% of total exports. Therefore, agriculture is a promising avenue for achieving diversified and inclusive socio-economic growth.
Strategies for leveraging:
Agri-technology Adoption: Promote modern agricultural techniques and technologies, such as precision farming, to enhance yields.
Diversification: Encourage farmers to diversify into high-value crops, such as fruits and vegetables, reducing dependency on maize.
Value Addition: Invest in agro-processing industries to enhance value addition to agricultural products and minimize post-harvest losses.
Zambia’s government has set ambitions to become the breadbasket of southern Africa.
Progress to date
Significant steps have already been taken to capitalize on agricultural opportunities through the Comprehensive Agriculture Transformation Programme, which enhances support for farmers in areas such as mechanization, marketing, and processing.
President Hichilema’s New Dawn government is firmly committed to boosting agriculture and agro-processing, as evidenced by the establishment of an Agriculture Credit Window within the transformation programme. This initiative has garnered participation from five commercial banks, facilitating the release of $5.5 million from the African Development Bank towards the Sustainable Agricultural Financing Facility (SAFE), alongside K200 million from the Zambian government.
Together, these funds will amount to a total of $18.5 million, supported by an 80% risk mitigation strategy. Additionally, the National Agriculture Diversification Strategy has been implemented, and an Agriculture Mechanization Policy has been launched to further enhance productivity within the sector.
Mining
Zambia is one of Africa's largest copper producers, with abundant supplies of cobalt, gemstones, and other minerals as well. The mining sector is crucial to Zambia's economy, significantly contributing to GDP, tax revenues, and export earnings. In 2023, mining accounted for 13.7% of Zambia's GDP, up from 12.9% in 2022, and was the second-largest contributor to GDP in both 2023 and in the first quarter of 2024.
Strategies for leveraging:
Local Content Policies: Implement policies that promote local processing of minerals to bolster the domestic economy.
Sustainability Initiatives: Invest in sustainable mining practices that protect both the environment and local communities.
Public-Private Partnerships (PPPs): Foster collaborations between the government and private sector to enhance infrastructure and investment within the mining sector.
Progress to date
The government has made significant strides in enhancing the mining sector, underlining its commitment to fostering local participation and attracting foreign investment. A landmark achievement includes securing a USD 100 million partnership between Moxico Resources and Mimbula Mineral Resources for copper exploration, a key focus given the country's rich mineral deposits.
Furthermore, the registration of 256 local mining cooperatives, alongside the issuance of licenses to 126 gold mining cooperatives and 65 artisanal cooperatives for other mineral exploitation, reflects a strong push towards empowering local stakeholders.
In a significant boost to the sector, KoBold Metals has invested USD 150 million into the Ming’omba Mining project in Chililabombwe, highlighting the growing international confidence in Zambia's mining potential. Additionally, the government successfully negotiated an increase in its shareholding in the newly revitalized Mopani Mine from 20% to 49%, aligning with its policy to enhance local ownership in mining firms and ensure that the benefits of mineral wealth are more widely shared among Zambians.
The New Dawn government aims to produce 3 million tonnes of copper by the early 2030s.
Tourism
Zambia is a premier tourist destination in Africa, celebrated for its natural wonders, including its stunning waterfalls, lakes, and rivers, which represent nearly 35% of Southern Africa's water resources. About 32% of the country's land is designated as wildlife-protected areas, contributing significantly to economic development by generating jobs and foreign exchange.
Tourism is primarily centered around wildlife conservation areas, with 20 national parks and 34 game management areas. Victoria Falls, a UNESCO World Heritage site, is among Zambia's most iconic attractions.
Strategies for Leveraging:
Infrastructure Development: Invest in infrastructure (roads, airports, accommodations) to improve accessibility for tourists.
Marketing and Promotion: Create a robust branding strategy to position Zambia as a leading tourist destination.
Community-Based Tourism: Promote responsible and sustainable tourism practices that benefit local communities.
Ecotourism and Cultural Tourism: Develop initiatives that highlight Zambia’s natural and cultural heritage.
Victoria falls, known as ‘the smoke that thunders’ in the local Lozi language.
Progress to date
The New Dawn government is implementing a multifaceted approach to boost both accessibility and promotion in the tourism sector. Key developments include the construction of 3,297 kilometers of access roads and 3,889 kilometers of loop roads in selected national parks, which facilitate easier travel to these natural wonders.
Additionally, the government has crafted a comprehensive tourism marketing and promotion strategy, and secured USD 100 million in World Bank funding aimed at developing the northern and western tourism circuits.
To further amplify its global reach, tourism secretaries have been deployed to key embassies around the world to spearhead marketing efforts. As a testament to these initiatives, visits to national parks, waterfalls, and heritage sites surged by 22 percent in 2022, with 605,650 tourists recorded, up from 496,456 in 2021, largely attributed to the removal of visa requirements for several countries.
By the third quarter of 2023, international tourist arrivals reached an impressive 987,080, highlighting the effectiveness of the government's strategic interventions in revitalizing Zambia's tourism landscape.
Renewable Energy
Zambia boasts significant hydropower potential, alongside solar, wind, and biomass resources.
Strategies for leveraging:
Investment in Renewable Technologies: Attract foreign investment for renewable energy technology to strengthen capacity.
Decentralized Energy Solutions: Promote off-grid renewable energy options in rural areas to expand electricity access.
Regional Power Trade: Explore opportunities for regional energy trading with neighbouring countries to optimize resources.
Sustainability Policies: Formulate policies that encourage sustainable energy generation and reduce reliance on fossil fuels.
Progress to date
Zambia’s government is committed to advancing the generation, transmission, and distribution of renewable energy, with notable developments showcasing this dedication. ZESCO, the state-owned power utility, recently signed a landmark USD 3.5 billion deal with China CiEG to bolster renewable energy production in the country.
In a parallel effort, ZESCO entered into a Memorandum of Understanding and a Joint Venture Development Agreement with Masdar of the UAE, paving the way for an impressive USD 2 billion investment in solar projects. With the commissioning of an additional turbine at the Kafue Gorge Lower Hydro Power Station, Zambia's national installed capacity has risen to approximately 3,800MW.
Significant efforts are also underway to expand solar energy access, evidenced by the establishment of 11 solar mini-grids, the installation of 100 solar PV systems at health centers, 200 solar home systems for households, and 79 solar home systems for chiefdoms. Furthermore, the Kabwe 100MW Solar Photovoltaic Project, set to become Zambia’s largest solar power plant, broke ground in February 2024, further underscoring the government's commitment to sustainable energy development and its proactive approach to implementing policies that promote the growth of the energy sector.
Manufacturing Sector
The manufacturing sector is crucial for Zambia's economic growth and job creation. Recognized as a key driver for transformation and employment opportunities in the Eighth National Development Plan (8NDP), a focus on local value addition and development of complete value chains can lead to a more diversified economy and sustained growth.
Strategies for everaging:
Skill Development: Facilitate training programs to enhance the workforce's skills to meet industry demands.
Market Access: Negotiate trade agreements to improve access to regional and international markets for manufactured goods.
Support SMEs: Establish support mechanisms for small and medium enterprises (SMEs) to encourage innovation and job creation in manufacturing.
Progress to date
The Zambian government's commitment to revitalizing the manufacturing sector is evidenced by several significant developments. Notably, the revival of Mulungushi Textiles stands out as a pivotal initiative, aiming to restore the textile industry to its former glory and create employment opportunities for local communities.
Additionally, the reopening of the local fertilizer manufacturing plant is a crucial step towards achieving self-sufficiency in agricultural inputs, while the anticipated establishment of a car battery manufacturing plant represents a forward-thinking approach to diversifying the industrial base.
Furthermore, the rejuvenation of Kafue Nitrogen Chemicals of Zambia (NCZ) not only enhances domestic production capacity but also aligns with the government's vision of sustaining economic growth through local industrialization. Collectively, these initiatives underline the government's strategic push to bolster the manufacturing sector and foster a more resilient economy.
ICT and Digital Economy
The digitalization of the economy is a pivotal driver for social and economic growth in Zambia. Harnessing the opportunities of digitalization can help the government achieve its development goals and foster sustainable economic advancement. Zambia's tech-savvy youth population positions the country favourably within the digital economy.
Strategies for Leveraging:
Infrastructure Investment: Invest in internet infrastructure to improve connectivity throughout urban and rural regions.
Digital Skills Training: Implement programs to enhance digital literacy and technical capabilities among youth.
E-Governance: Utilize technology to improve governance, service delivery, and transparency in public administration.
Steps taken to date to leverage each opportunity
In a landmark initiative aimed at propelling Zambia's digital landscape forward, the government launched the E-MARK Innovation Hub in November 2024. This innovative hub promises to transform the tech and entrepreneurial ecosystem by offering startups, small and medium enterprises (SMEs), and creatives access to state-of-the-art resources, collaborative working spaces, and comprehensive skills development programs. Such advancements highlight the government’s commitment to nurturing a vibrant digital economy and empowering the next generation of Zambian innovators.
Conclusion
To leverage Zambia's comparative advantages, a long-term vision, strategic policies, and collaborative efforts between government, private sector, and civil society are essential. By focusing on these key strategies and establishing a comprehensive, long-term developmental policy that engages all sectors of society, Zambia can make significant progress toward sustainable economic development over the next sixty years.
About the Author:
Dr. Kiru Sichoongwe is a Zambian economist currently serving as a Research Fellow in the Department of DSI/NRF South African Research Chair (SARChI) in Industrial Development at the University of Johannesburg, South Africa.
Disclaimer: The opinions expressed in this article are those of the author. They do not purport to reflect the opinions or views of the institute where the author is affiliated.